Prepaid & Financial Services: Convenience Retailer Averages

Year-end 2013

To provide a snapshot of the financial services and prepaid category in c-stores, InComm, an Atlanta-based distributor of stored-value and prepaid products to the c-store channel, has shared average daily revenue figures (ADR) for what it considers best-in-class and middle-tier retailers, as well as those who have room for improvement. Included in the charts below are ADRs for wireless—the total prepaid mobile top-up business—and long-distance and financial services, which includes open-loop and general purpose reloadable cards (GPR).

C-Store Sample: Prepaid & Financial Services ADRs

Best in Class

Retailer

Wireless ADR

Long-distance ADR

Financial-service ADR

Closed-loop

Content (gaming/music)

Total ADR sales

Retailer A

$67.89

$1.93

$214.79

--

$12.61

$297.22

Retailer B

$72.44

$0.85

$97.16

$21.43

$25.70

$217.56

Retailer C

$67.06

$0.80

$107.45

$4.52

$7.06

$186.89

Retailer D

$52.16

$0.79

$88.44

$10.05

$4.88

$156.32

Retailer E

$58.03

$2.03

$82.47

$1.52

$0.12

$144.17

Middle of the Road

Retailer F

$63.88

$0.29

$60.64

$1.11

$3.74

$129.68

Retailer G

$54.69

$1.49

$40.91

$13.18

$8.99

$119.25

Retailer H

$40.94

$0.75

$25.37

$2.47

$6.00

$75.54

Retailer I

$38.73

$3.00

$22.01

$0.11

$0.74

$64.59

Retailer J

$52.54

$0.32

$4.33

$1.27

--

$58.46

Retailer K

$32.01

$0.32

$21.60

$0.40

--

$54.33

Retailer L

$16.63

$1.22

$33.80

$1.55

--

$53.21

Room for Improvement

Retailer M

$3.90

$0.20

$32.85

$15.29

$0.70

$52.94

Retailer N

$36.32

$0.43

$13.55

$0.52

$0.21

$51.03

Retailer O

$30.36

$0.17

$2.87

$0.91

$0.12

$34.53

Retailer P

$27.61

$0.27

$3.36

$0.65

--

$31.89

Retailer Q

$21.08

$0.19

$7.58

$1.77

--

$30.62

Retailer R

$15.33

$0.51

--

--

$3.38

$19.22

Retailer S

$14.03

$1.97

$0.20

$0.40

--

$16.60

Retailer T

$1.99

$0.53

$0.25

$0.05

--

$2.82

Source: InComm

Customer in Focus

According to research firm Packaged Facts, approximately 40% of adults 18 years or older are unbanked. The research firm, drawing from Experian Simmons survey data, points out that this represents a 13.2% increase from 2005. Interestingly, the percentage of 18- to 24-year-olds who self-identify as unbanked grew almost 25% from 2005 to 2013, to reach 67%.

Distributor Data: Prepaid UPCs

The top-shipped prepaid UPC from McLane in 2013 was the $100 Visa gift card.

UPC

1. Visa $100 gift card

2. PayPower Prepaid VISA brochure

3. American Express $100 gift card

4. Visa $50 gift card

5. Boost $50 phone card

6. Visa $25 gift card

7. Visa $100 GPR card + $3.95 purchase fee

8. Verizon $15 phone card

9. American Express $50 gift card

10. Amazon $25 gift card

Source: McLane Co.

Cross-Category Opportunity

Forty-five percent of lottery market baskets included items from other categories, according to recent research by Management Science Associates that examined point-of-sale data at three midsize c-store chains. Purchases with lottery were more likely to include scratch tickets, newspapers and other publications. The average lottery market basket was $14.34, with lottery contributing $9.56 and scratch tickets $3.73.